REAL ESTATE (Regulation & Development Act), 2016 Govt has empowered the Real Estate Buyer (Residential or Commercial) with a very strong Regulatory Act namely “ RERA “ RERA has brought confidence not only with real estate consumers but also within other stakeholder community like Banks, Financial Institutions, Foreign Investors …
Today when the buyer goes real estate shopping the developer says that he is registered with RERA and the customer feels confident. RERA has become a synonym for TRUST & CONFIDENCE
But does a customer truly understand the provisions of RERA – I am not sure – hence I decided to put in writing in very simple terms that the obligations of the developer under RERA extend to Residential and Commercial Real Estate both. Registering a project with RERA is mandatory if the size of the plot is 500 sqr mtr or above or the number of apartments is 8 or more
Obligations of Real Estate Developer
The developer is obliged to disclose all relevant project information for public view such as
1. Details of the promoter, layout plan, plan of development works, land status, the status of statutory approvals, number of parking, time period for project completion … The customer can check the above information on the RERA website and can also ask the developer to see the physical hard copies of the same This clears the first step of verification and the first step into buying with confidence
2. The Agreement To Sell has a standard format created by the authority which protects the buyer as well as the developer The Legal paper runs into pages and the consumer is not trained to read and understand the content. At times buyer was cheated because of hidden clauses or cleverly drafted agreements. With the standard Agreement To Sell approved by RERA, the fear is GONE.
3. The developer has to declare the credentials of Architects, Engineers, Consultants, Contractors and Agents working on the project
Developer also has to comply with
1. Adherence to approved plans and project specifications The plans approved by the competent authority have to be followed strictly and no changes are permitted until consent from the majority of allottees is obtained. Likewise, the specification mentioned in the brochure has to be strictly followed
2. Obligations regarding the authenticity of the advertisement or brochures/catalogues
3. Rectify Structural Defects
4. Refund money in case of default
5. Compulsory deposit of 70 % of the amount realized from allottees in a separate account to cover the land cost and construction cost
RERA has been framed for regulation and promotion of the real estate sector. The act is in force to protect the interest of the consumer in real estate. RERA will also ensure the timely redressal of customer complaints.
Dear Consumer go ahead and buy your dream home, shop, office etc “ RERA aap ke liye chowkidari kar raha hai “